Fingen's 12-year, $1000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1050 and the market's required yield to maturity on a comparable - risk bond is 9 percent. Compute the bond's yield to maturity. Determine the value of the bond to you, given your required rate of return. Should you purchase the bond?

A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent?  Please show how I can solve this in Excel, thank you.

(e) A bank issues a 5-year bond that pays 3-month Euribor plus 50 basis points on a quarterly basis. The bond is issued at its par value. An investor purchases €100m of this bond in the primary market, estimate the interest rate and credit spread durations plus the PV01 and CS01 sensitivities for this holding. State any assumptions you make in making these estimates.

You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 1.50 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate = 0.50% Default risk premium = 1.40% Liquidity risk premium = 1.00% Maturity risk premium = 2.00% a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30-year bonds? Note: Round your percentage answers to 2 decimal places (ie., 0.1234 should be entered as 12.34). Expected inflation premium Fair interest rate